BANK OF ALBANIA

PRESS RELEASE
Governor Sejko attends the discussion meeting: “Access to Finance in Albania”, organised by the WBG

Publication date: 28.02.2023

 

On 28 February 2023, the Governor of the Bank of Albania, Mr Gent Sejko, attended a discussion meeting focusing on access to finance in Albania, organised by the World Bank Group. The meeting was also attended by executives of commercial banks, experts of the financial sector and representatives from financial institutions in Albania.

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The meeting took place in the framework of the collaboration of the World Bank with the Ministry of Agriculture and Rural Development, for the preparation of a supportive project concept for the financing of agriculture. The process aims at providing stable solution, by upholding access to finance for this sector, from the accumulation of private funds in addition to the budgeted funds.

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In his address, Governor Sejko stated that the banking sector in Albania is well-capitalised, and liquid, in turn its support to private sector has been increasing. Nevertheless, the Governor added that the financial sector may play a more important role for the sustainable and long-term economic growth in Albania.

In terms of access to finance, Mr Sejko noted that, in a broader view, the exploring of inter-sectoral solutions is crucial - including Fintech, digitalisation of financial services and the innovate financial instruments - which would facilitate access to financial services. Green finance is an important field which calls for a rapid targeted action to address the adoption to climate changes, the mitigation of risks, and catch-up with the possibilities provided from green financing.

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The Bank of Albania, in support to market development, is working on the improvement of payment systems, for introducing new standards of both communication and services which helps to addressing the infrastructural needs. Expressed in concrete figures terms, the use of electronic payments reached at 12.5 cashless payments per capita in 2021, by exceeding the targeted objective in the Strategy of 10 payments per capital till the end of 2023. In 2022, this figure is assessed to have reached at 16 cashless payments per capita.

The Governor pointed out that the favourable financing conditions in Albania has boosted lending to economy. In this regard, banking sector has continued to supply favourable lending terms and conditions.  In concrete terms, this growth stood at 14% over 2022. At the same time, credit portfolio quality continues to remain sound, as shown by the non-performing loans ratio reaming at the lowest levels in the last decade.

Particularly, referring to agro-business, Governor Sejko highlighted that this sector has the huge potential in both domestic and foreign markets, but it needs to be adapted to the new production technologies and processes.

Specific lending issues to agricultural sector have been already identified, from some time now, and part of them are yet relevant. While some of these problems are being addressed, the other obstacles should become subject of a critical assessment and their solution should become an integral part of our next work agendas.

Concluding, Governor Sejko pointed out: “In this context, without affecting its soundness’ indicators, I am confident that banking system will know to be positioned as a supporting-development agent. This sector should enhance its attention and its financing, analysing and advisory capacities, by fulfilling its mission in view of the sustainable growth of the country”.

In his address, Mr Emanuel Salinas, the World Bank Country Manager for Albania, stated that the purpose of this meeting is to discuss lending issues to the agricultural sector in Albania and introduce the outputs and initiatives of the World Bank in this regard. Access to finance is a problem for Albania and worldwide, while the meeting focuses also on the initiatives which may be adequate for Albania.

At the conclusion of this event, participants discussed the opportunities and joint support to enhance lending to agriculture, as a possibility for the further development of the country, the diversification of economic growth sources and in turn diversification of credit risk sources to the financial sector.